Taxation Rule Under Exit Policy

Ramesh (Querist) 25 September 2010 This query is : Resolved
Hi,

Just wanted to understand if rebate from tax for Rs 5,00,000/- is provided under 10(C) for people who have opted for exit policy option.

Thanks

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B.Chakrapani Warrier (Expert) 26 September 2010
Section is 10 (10C). It is an exemption and not rebate. The said section says any amount received or receivable by an employee, covered in clauses (i) to (viii),on his/her voluntary retirement or termination of service is exempted up to Rs. 5,00,000/-